Tupelo Data Room

accounting practice for Sale in Washington

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Accounting & Tax Practices

Add-On: Seattle, WA Based / Outsourced CFO / $705K Adj. EBITDA

WA, US

Add-On Opportunity: Seattle, WA Based / Outsourced CFO & Accounting Services / $705K Adj. EBITDA / 92% Ongoing Revenue / Founders Staying Post-Close COMPANY OVERVIEW The Company is a Seattle-based outsourced CFO and accounting-services firm serving electric utilities, school districts, Tribal and governmental organizations, healthcare providers, and grant-funded nonprofits. Importantly, the two CPA owners are not seeking to exit the business. They want to join a larger platform with the personnel, infrastructure, and service capabilities needed to support continued growth. Both are committed to at least 18 to 24 months of active post-closing involvement and are open to longer-term roles in client leadership, relationship management, and business development. Clients retain the Company for CFO-level judgment, including budgeting, forecasting, treasury, board reporting, financing, rate analysis, grant compliance, audit coordination, and strategic decision support. Monthly accounting and payroll provide the recurring production layer beneath these relationships. KEY KPIs - $1.20 million of LTM June 2026 revenue - $845,000 of management-basis adjusted EBITDA - 70.2% management-basis adjusted EBITDA margin - $705,000 of adjusted EBITDA after a $270,000 provision for two replacement CPA operators - 58.6% fully normalized adjusted EBITDA margin - 26.5% revenue CAGR from FY2021 through FY2025 - 92% of LTM revenue from ongoing relationships - 85% of revenue from clients billed in at least 10 of the last 12 months - 94% revenue-weighted retention from FY2025 into the LTM period - Approximately $10,800 average monthly fee across nine ongoing engagements - Largest client represents 15.3% of revenue - No funded debt, office lease, or material fixed assets - Fully remote domestic and offshore delivery model - Both owners committed to remaining actively involved following closing RECENT PERFORMANCE Revenue declined 5.7% from $1.28 million in FY2025 to $1.20 million in the LTM period. The decline primarily reflects the scheduled completion of a $116,000 interim CFO engagement and the release of an underpriced legacy client. Excluding interim work, LTM revenue was within approximately 2% of FY2025. Management projects approximately $1.27 million of FY2026 revenue based on results through September, signed client additions, fee increases, and recurring fourth-quarter audit work. This projection is not included in the historical headline results. STRATEGIC ADD-ON The Company would be a compelling add-on for a CPA firm, client-accounting-services platform, outsourced-CFO consolidator, or finance-as-a-service provider. The owners specifically want to become part of a larger organization that can place accounting and financial-consulting personnel beneath them. This would allow the owners to transition away from routine production and focus on executive-level client service, referral relationships, and new business development. A strategic acquirer could: - Absorb accounting production through existing personnel - Reduce the full replacement-cost provision - Cross-sell tax, attest, payroll, and advisory services - Introduce fractional-CFO services across its existing client base - Expand the offshore delivery model - Use the owners to originate and expand institutional relationships Illustrative adjusted EBITDA potential approaches $963,000 if identified initiatives are achieved and a strategic acquirer absorbs one operator role. This figure is not historical earnings. NEW PLATFORM OPPORTUNITY The Company could also serve as the foundation for a specialized outsourced-finance buy-and-build strategy. Its recurring fixed-fee revenue, institutional client base, remote delivery model, offshore production capacity, and specialized expertise provide an established starting point.

-Asking Price
$1,200,000Revenue
$705,000Cash Flow

Market Snapshot

National transaction benchmarks for accounting practice businesses.

Under $500K

Median revenue$231k
Median cash flow$96k
Median sale price$190k
Multiple range1.5x - 2.4x

$500K to $2M

Median revenue$794k
Median cash flow$322k
Median sale price$800k
Multiple range2.0x - 3.5x

Over $2M

Median revenue$2.40m
Median cash flow$705k
Median sale price$3m
Multiple range3.6x - 4.6x

A variety of factors can cause businesses to trade outside this range, including earnings quality, operational transferability, key-person risk, growth trajectory, and geography, so a listing priced above or below the typical multiple usually reflects real differences in the underlying business.

What to know about accounting practice acquisitions

GW

By George Wellmer

Cofounder & CEO

Key diligence, valuation, financing, and transition considerations for buyers evaluating accounting practice acquisitions.

Client retention is the underwriting question

The standard assumption is 80–90% retention. Most accounting-practice sale terms include a retention provision: if the buyer loses more than a defined percentage of revenue in the first year, the purchase price is adjusted downward through clawback or an earnout. Sellers who refuse retention terms are signaling something either that they know their clients won't stay or that they don't think they'll be involved enough to help. Walk away from "as-is" deals unless the price is heavily discounted.

The seller's transition role determines outcomes

Buy the seller's calendar, not just the firm. The single biggest predictor of client retention is whether the seller stays involved for 6–18 months, makes warm introductions, and signs the engagement letters under the new firm. Practices where the seller disappears on day one lose clients fast. Practices where the seller phases out over a year keep them. Negotiate the seller's role in writing: hours per week, specific client meetings, how introductions happen, when the seller's name comes off the door.

Practice composition shifts the multiple

Tax-heavy versus bookkeeping-heavy is a real distinction. A practice that's 80% individual tax returns is seasonal — three months of intensity, nine months of slack. A practice that's 60% bookkeeping and 40% tax has steady monthly revenue but lower margins. Business-tax-and-advisory practices have the best economics: higher fees per client, year-round work, deeper relationships. The mix matters more to your day-to-day than the price.

Software ecosystem migration is a hidden cost

Audit the tech stack before close. If the seller runs everything on a decades-old desktop tax package and physical filing cabinets, your first two years include a software migration that will eat hundreds of hours and risk client confusion. If the practice is already on cloud platforms (QuickBooks Online, Drake or CCH cloud tax, a modern document portal), you can focus on growing the book. Ask for a tech stack inventory and budget for replacement of anything more than 5 years old.

CPA licensing rules vary by state

Check the ownership requirements for your state. Most states require a CPA practice to be majority-owned by licensed CPAs. If you're not a CPA, you can still buy in some structures, but you'll need a CPA partner or you'll need to convert the practice to a non-CPA-licensed bookkeeping or tax-prep entity (which limits what services you can offer and may trigger client departures). Verify your state's rules and the practice's licensing status before signing an LOI.

Staff retention is a separate negotiation

The senior accountants are the firm. Most clients have a primary relationship with a staff accountant, not with the owner. If that person leaves at close, you lose their clients. Identify the key staff before close, meet with them privately, and have retention bonuses ready — typically 25–50% of annual salary paid out over 18–24 months. Build the bonus pool into your purchase model; this is non-optional, not optional.

Frequently Asked Questions

Answers to common buyer questions for this market.

The traditional rule of thumb is 0.8x to 1.2x of annual gross revenue, with practices trading in the Tier 1 range (under $500K) for revenue under ~$500K and Tier 2 ($500K–$2M) for mid-sized practices. Higher-margin advisory-heavy practices can sell at multiples of SDE that imply higher gross-revenue multiples. The price isn't really a fixed number, it's a formula with a retention adjustment, so the headline number can swing 20% based on year-one client loss.